Key Points
Artificial intelligence (AI) is already having meaningful impacts across a wide variety of sectors and end markets. Few industries will be as transformed by AI as transportation. That’s because, after decades of failed promises, AI is now making truly autonomous vehicles possible for the first time.
The market potential of autonomous vehicles is truly massive. One segment of this market alone could be worth up to $10 trillion globally. And there are two electric vehicle (EV) stocks in particular poised to benefit despite their shrinking valuations so far this year.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
1. Rivian is my top growth stock for 2026
Early this year, I named Rivian (NASDAQ: RIVN) my top growth stock for 2026. The thesis was simple. Shares currently trade at just 3.4 times sales, with a market cap under $20 billion. But the company’s first model priced under $50,000 — its R2 SUV — is expected to begin deliveries to employees this month, with scaled production and deliveries expected over the next few quarters.
The potential for Rivian from this one move should not be understated. Tesla (NASDAQ: TSLA) provides the clearest example of how transformational the first affordable model can be for an EV stock. Today, more than 95% of the company’s auto sales volumes stem from just two models: the Model 3 and Model Y. Both have base prices under $50,000.
Scaling EV production is hard. Tesla almost went bankrupt trying to scale its Model 3 production. “The Model 3 ramp was extreme stress and pain for a long time — from mid-2017 to mid-2019. Production and logistics hell,” Elon Musk once said. “There were times when I didn’t leave the factory for three or four days — days when I didn’t go outside.”
Expect Rivian to endure plenty of bumps along the way. But Tesla’s $1 trillion valuation was made possible by scaling production of its first affordable models. This year, Rivian is replicating this blueprint for growth.
Image source: Getty Images.
2. Expect Tesla to dominate the robotaxi market
I like Rivian stock because, despite its growth potential, shares remain cheap, with a total market cap still under $20 billion. Tesla’s $1.1 trillion leaves far less absolute growth potential. But I expect the company to be a clear leader in the global robotaxi market.
There are two primary reasons to expect Tesla to execute on its robotaxi vision.
First, its $1 trillion valuation allows it to invest more aggressively than any other automaker. Already, the company has invested $2 billion in Musk’s AI start-up, xAI. And its capex vision calls for a sizable increase in AI investments, which should prove critical for achieving fully autonomous vehicles.
Second, Tesla has already scaled its vehicle production infrastructure through its consumer sales. Unlike potential big tech competitors — which largely lack the means to produce vehicles — Tesla has a huge leg up in deploying millions of self-driving vehicles. And because the AI models that are helping make self-driving vehicles a reality need massive amounts of data to operate accurately, this ability to scale production quickly and with minimal outside support should not be underestimated.
There is clearly a lot of hype priced into Tesla’s stock price right now. Auto sales have been declining for years, meaning the valuation is largely tied up in expectations.
Still, shares are down nearly 20% since 2026. And Tesla’s ability to capitalize on the self-driving revolution is arguably greater than any other company’s. So if you’re looking to invest in a company with the greatest chance of succeeding, Tesla stock still offers compelling value after the recent correction.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
